Now, St Yaxing, controlled by Weifang state-owned assets, is “seeking marriage” in cash, and Jingzhi liquor industry is expected to enter A-share market. However, whether st Yaxing has the ability to acquire Jingzhi liquor industry is questionable.
Baijiu plate continued to “drink high” in the first year of the year. Wind data showed that the Baijiu index (884705) fell 4.48% today, and has been down two consecutive days. But capital is still on the hunt for baijiu.
, Erguotou, a leading star in the Hongxing Erguotou group, invested 4 billion 500 million yuan (RMB), and then “ST” (600702.SH) after the 603025.SH. In January 10th, ST announced that it would acquire control rights of Shandong Jingzhi Baijiu liquor business. Baijiu Baijiu, a Baijiu marketing expert, told Xiao Zhuqing in January 10th that Jingzhi liquor is a national standard of sesame flavor liquor. It is the core technology of sesame flavor liquor making. It is also the leading Baijiu company in Shandong. It has strong brand strength and sales performance in the surrounding market of Shandong Weifang. Meanwhile, Shandong is a big Baijiu province but there is no Baijiu listed company. ST Yaxing’s acquisition of Jingzhi wine industry is expected to make up for this deficiency. < / P > < p > as early as 2018, Jinshiyuan began to plan to purchase Jingzhi liquor. At that time, the 16th meeting of the third board of directors of Jinshiyuan deliberated and passed the “proposal on purchasing part of shares of Shandong Jingzhi liquor industry”, which proposed to purchase 34% to 49% shares of Jingzhi liquor industry. < p > < p > however, due to the following factors, such as the proportion of shares purchased by the major shareholders of Jingzhi liquor industry, the performance of the three years after the acquisition, and the rights and obligations of both parties could not be fully agreed, Jinshiyuan gave up the way of direct merger and acquisition, and instead promoted the Jingzhi project by establishing the mode of industrial merger and acquisition fund. < / P > < p > in December 2019, Jinshiyuan, as a limited partner, set up an industrial M & A fund, with its own capital of 245 million yuan, accounting for 49%. < p > < p > however, in December 2020, Jinshiyuan issued the announcement on terminating investment and establishing industrial M & A fund, and terminated the acquisition of Jingzhi liquor. < / P > < p > as for the reasons for the termination of the acquisition, Jinshiyuan said that due to the influence of the macro environment, the competitive situation of the industry and the operating situation of the target enterprises have changed. Meanwhile, the market valuation of Baijiu industry has also changed greatly.
wind data showed that Baijiu index (884705) rose more than 150% from the end of 2019, and the market value of all listed companies also increased significantly. Since the beginning of last year, the market value of all Baijiu listed companies in A shares has increased to a certain extent, of which the growth rate of 000799.SZ and Shanxi Fen (600809.SH) is over 300%. (click to view relevant reports) < / P > < p > according to the data disclosed by Jinshiyuan at the end of 2019, the total audited assets of Jingzhi liquor industry in 2018 were 3.493 billion yuan, the net assets were 757 million yuan, the revenue was 1.248 billion yuan, and the net profit was 6.275 million yuan; in the first 11 months of 2019, the total unaudited assets were 3.453 billion yuan, the revenue was 1.236 billion yuan, and the net profit was 37.15 million yuan. < p > < p > according to the revenue of about 1.2 billion yuan, the sales scale of Jingzhi liquor industry is equivalent to that of Yilite (600197.sh), Jiugui Liquor and Jinhui liquor (603919.sh), and the latest market value of these three liquor enterprises has exceeded 12.3 billion yuan, 63.7 billion yuan and 19 billion yuan respectively. At the end of 2019, the valuation of Jingzhi liquor is about RMB 500 million, accounting for 4%, 1% and 3% of the market value of Alite, Jiugui and Jinhui respectively, based on the 49% equity sale of RMB 245 million. This also means that the value of Jingzhi liquor industry may be underestimated. < p > < p > on January 10, St Yaxing also announced the change of the company’s controlling shareholder while announcing its intention to acquire Jingzhi liquor. St Yaxing said that on January 8, 2021, Weifang City Investment Group, the two major shareholders of St Yaxing, and Yaxing Group signed the “voting power entrustment agreement”. The controlling shareholder of St Yaxing was changed to Weifang City investment, and the actual controller was changed to Weifang state owned assets supervision and Administration Commission. On January 11, Ouyang Qianli, an analyst of liquor industry, told time financial analysis that the failure of Jinshiyuan’s acquisition of Jingzhi liquor industry in the later period may be related to the different ideas of the two enterprises, but the local government of Weifang is also against the acquisition. “There is no risk of the loss of state-owned assets in the acquisition of Jingzhi liquor by the listed companies with the background of Weifang state-owned assets.” < / P > < p > focusing on the merger, St Yaxing’s operation and other issues, on January 11, time finance and economics respectively called the state owned assets supervision and Administration Commission of Weifang City, St Yaxing and Jingzhi liquor industry. St Yaxing replied that the relevant information was mainly the company’s announcement, while the state owned assets supervision and Administration Commission of Weifang City and Jingzhi liquor industry did not reply. < / P > < p > it failed to commit to the second place of Suzhou liquor. Now st Yaxing, controlled by Weifang state-owned assets, is “seeking marriage” in cash, and Jingzhi liquor is expected to land on A-share market. However, whether st Yaxing has the ability to acquire Jingzhi liquor industry is questionable. Official information shows that st Yaxing’s main business is the production and sales of chlorinated polyethylene (CPE), caustic soda, ADC foaming agent, hydrazine hydrate, etc. < p > < p > in September 2019, St Yaxing received the Relocation Notice issued by the office of Weifang Municipal People’s government. Because the company’s production plant is located in the central urban area, the products are dangerous chemicals, and the surrounding shops are dense and there are many residents, Weifang Municipal People’s Government decided to relocate and close the company’s production plant located in the east of Beihai Road and the north of Minzhu street in Hanting district. This has led to the total shutdown of St Yaxing production area from October 31, 2019. < / P > < p > as St Yaxing said that the production plant has been completely shut down, it is estimated that it will not be able to fully resume production in the next three months. According to article 13.4.1 (2) of the Listing Rules of Shanghai Stock Exchange, “if the production and operation activities are seriously affected and are not expected to return to normal within 3 months”, Shanghai Stock Exchange shall give other risk warnings to its shares. < p > < p > st Yaxing believes that the closure of the production plant leads to the triggering of the above provisions, so it applies to Shanghai Stock Exchange to implement other risk warnings. The company’s stock will implement other risk warnings from November 4, and the stock abbreviation will be changed from “Yaxing chemical” to “St Yaxing”. < / P > < p > in this case, the performance of St sub star is also sluggish. In the first three quarters of 2020, St Yaxing achieved an operating revenue of 42.842 million yuan, a year-on-year decrease of 96.95%; its net profit was a loss of 1997.92 million yuan, a year-on-year decrease of 202.25%. At the same time, as of the first three quarters of 2020, the asset liability ratio of St Yaxing is as high as 97.18%, and the capital on the account is only 145 million yuan. < / P > < p > st Yaxing, with limited capital and high debt, obviously can’t afford to buy Jingzhi liquor. Under the leadership of the state owned assets supervision and Administration Commission of Weifang City, how st Yaxing raised money to purchase Jingzhi liquor industry has become a concern in the industry.
in January 11th, Jin Yufeng, a Baijiu industry expert and an executive partner of Zhongyuan fund, said in an interview with the times finance, there is great uncertainty about how Weifang SASAC finds reasonable and legitimate means and reasons to invest in ST star’s purchase of Jingzhi liquor industry. “Yaxing has been unable to seek funds for listed companies by means of additional issuance after ST, and even if Weifang state-owned assets want to inject funds into st Yaxing through conventional channels, it is not small.” < p > < p > SHEN Meng, director of Xiangsong capital, told time finance that the problem of ST shares is that their own assets can not produce good performance and take off the hat of St. one of the reasons behind this is that shareholders lack the strength to turn the situation around. < / P > < p > SHEN Meng pointed out that when the local government takes over, although st Yaxing will not have structural improvement immediately, it enriches the possibility of its asset restructuring. The acquisition of Jingzhi liquor can also be completed through bank credit or debt issuance, and may not choose the form that may touch the supervision.
Jin Yu Feng also pointed out that in Baijiu’s stock market is now popular, this ST Asian star acquisition Jingzhi wine industry, more like the local government to help ST Asia Star to achieve “protect the shell” made the move, Jingzhi wine industry has played the role of “chess”.
Ouyang told ST that the financial difficulties of Yaxing were the difficulties of the shell industry, and the demand for transformation was in demand. The Baijiu industry is undoubtedly a good choice. The success of Huangtai’s liquor industry has made it possible for the outside world to realize shell protection reasonably and legally. < / P > < p > Huangtai liquor (000995. SZ), a liquor enterprise in Gansu Province, was suspended for more than a year due to continuous loss of performance. However, Shengda Group, its major shareholder, continued to “transfuse blood” for Huangtai liquor by means of loans and property gifts to help Huangtai liquor turn around its losses. On December 16 last year, Huangtai liquor successfully resumed trading, and its share price has soared by 245%. (click to see related reports)
Jingzhi Baijiu said that it will push forward the listing process in April 2018, “China Zhi Xiang liquor value summit”. After setting up the target of listing, in early 2019, Jingzhi wine industry released the plan of “billion billion Jingzhi”, and it will lock billions of goals in the next five years, realize Baijiu’s income of 8 billion yuan, and profit and tax over 3 billion yuan.
‘s listing and billion goals highlight the ambition of Jingzhi liquor industry. However, how to further consolidate the market in Shandong and break through the “small and scattered” competition situation in the Baijiu market is the first problem that Jingzhi liquor industry has to face.
Jin Yu Feng said that Shandong Baijiu enterprise has a typical characteristic, that is, “door to bucket”. Ingrained, there are two Baijiu enterprises in each prefecture level city, which can sell several hundred million a year, but the market of each wine enterprise is concentrated in only a few counties and cities in the province. The state of self-sufficiency is deep-rooted, and this kind of consumption has been going on until now.
according to Baijiu media Baijiu, Shandong’s brand names include Jingzhi, pull down well, corolla and Cloud Gate, and four cities such as Lan Ling, Gu Bei Chun, Taishan, Qin Chi, and today’s yuan Chun. Meanwhile, there are at least 28 Baijiu manufacturers in Shandong, but the largest Jingzhi liquor industry in this province has not earned more than 2 billion yuan annually. < p > < p > Jin Yufeng said that in the future, how to integrate the resources of all parties, break through the restrictions of Weifang region, and break the deadlock of competition among wine enterprises in the province, is a great challenge for St Yaxing and Jingzhi wine industry.
, a local Baijiu consumer in Weifang, interviewed in January 11th, said that local Baijiu consumption is indeed large, and there are many people buying Jingzhi, but there are many brands that are available. “Medium and high-end Baijiu will not consider Jingzhi basically. Apart from Moutai and Wuliangye, it will buy the Yanghe River and Furui Wa.” < / P > < p > according to the statistics of wine makers, the sales scale of Yanghe in Shandong alone reached 2.5 billion yuan in 2018, far exceeding that of Jingzhi wine, which has the largest sales scale in the province.
Jin Yufeng told times finance, Shandong Baijiu brand represented by Jingzhi lacks the history and blood relationship of the national famous liquor. “Most famous Baijiu brands in China will be promoted by national famous liquor selection, but none of Shandong Baijiu brands has won this honor. After the end of the famous wine appraisal, the consumer’s cognition began to solidify, and the Shandong Baijiu industry missed the opportunity. Cai Xuefei, an analyst at
liquor, said that enterprises like ST Yaxing, who had no experience in liquor management, rushed into the Baijiu industry, especially in regional liquor companies like Jingzhi. The risk was huge because Baijiu market was a complex and long business segment. < p > < p > Ouyang Qianli thinks that from the current situation, St Yaxing can not bring more benefits to Jingzhi liquor industry